Yellen to Testify Before Joint Economic Committee

5/7/2014 8:30AM

What to watch for in Janet Yellen's testimony before Congressional panels this week, a look at the markets and three stocks to watch today, plus, after generally positive earnings news, are airlines clear of financial turbulence? Photo: Getty.

This transcript has been automatically generated and may not be 100% accurate.

... the ... Fed Chair Janet Yellen kicks off two days of testimony before Congress the bank what will investors be watching fall well let me ounces from one of the Rio chief Economics correspondent John Hills unwrapped ... back and mall right here right now on the New Saab good morning and welcome I'm Simon Constable Lamb is the Hello app is standing by ... in Washington Sean thank you very much for being that we now he says ... when I snuggle audience I'm watching watching the Fed window would pray much know what you need arises I watching Janet Yellen ... now ... let's go through some of the things that you'll you'll be looking in looking at aam we know the economy still fragile I'll what ... what in particular on the fragility would you be looking up ... well yes so the first thing that I'm gonna be looking for when her testimony comes out and about an hour nap is ... how did she react to the jobs report we got pretty strong jobs number of jobs numbers on Friday ... I she Hester been pleasantly surprised by the pickup in job growth that we've seen ... but they're still lot of signs of slack time that we saw in that same report ... furnaces lot part-time workers ... who want full-time work ... silly at the CSU Hershey friends that have seized on the latest jobs numbers ... I think that can use ... the biggest news coming out to eat today is ... the she's seen this spring pickup that the Fed has been forecasting for awhile now ... then maybe be the next thing is when should interest rates be I guess ... when we get back to normal and it seems that we've been a mess of abnormal situation for a very long time ... yet ... well so I mean there's there's two pieces of is that that that is wrestling with what is ... when they start to raise rates ... Yellen the expectation right now in the market and that there seems to be comparable with it is ... you know not until sometime around the middle of next year ... I don't think Yellen is going to be moving the ball on that I think they got as they've gotta see more evidence ... that he either the economy is picking up more ... quickly than expected or inflation is taken up before ... the change the calculus in Poland and ... I then there's the question of what they do start raising rates how high they go on Yellen has talked about this a little bit but frankly ... she hasn't talked about in great detail ... you know that view if that is that ... even once they start raising rates they can afford to raise them too much ... because the economy remains very fragile from this recession and the Fed be keeping an eye on things embassies will that will they be looking at China and the meet some of that that the ... unity of the slowdown in growth that still growing ... but it's not quite as sad part is a huge debate ... you know it's it's funny is that the world overseas ... right now looks ... very tumultuous time who knows what's gonna happen in Ukraine between Russia and Ukraine ... that could affect our affect Europe ... but ... they actually from that ... perspective I think looks a little bit more benign today than it did the last couple of years despite all these worries about Ukraine ... the growth numbers are starting to pick up in your op ... I'll certainly be in the UK ... so you know that takes a little bit of worry out of the equation for the Fed ... and we're all waiting to see if China's slowdown in um turns into something more serious but I think ... that officials feel that ... the Chinese can handle their slow down and they have enough resources and tools to be able to pop the economy up to it so ... that that isn't too worried about the rest the world right now ... how can one you thank you Brian much John Hills unwrapped the present time ... and you can sing along and watched with the testimony Janet Yellen Hay on dovish datacom and Evista alike ... Thomas found the foster ... what's the rest of the show Mikel the markets to look at now we go said Polya Lesova him from the will Street gentle to help guide as to what's been happening ... and what is going to happen so ... Alibaba is the big news today said the Chinese company ... yes it's that good for the biggest Chinese e-commerce company and that it has gone friend plans to file for an IPO hitting the last ... which is expected to be one of the biggest stock listing stocking his study ... of how well they and that devaluation will be more than a hundred billion dollars let's let's repeat that these these numbers are in almost a hundred billion dollars ... y'all who stands to do very well off the back and yes yes who has a twenty two point six percent stake in United bow but ... that's actually ... I the main battle yet investors have been thinking of when the Chinese state I think ID Baba ... I it's not that it found twenty six am Dow is therefore will have to settle a case in the end of that in the IPO ... I'm so it definitely stands to benefit me while I'm with all the news that pale while ... of the book and did some throwback to the nineties there will still still around to message him what will my yes it having it dumped about eight percent that was above expectations ... on the profit I didn't do so well Profit doll due to some special touches me and so people will be looking at that ... now what we don't have to sing awnings to you at some eight am I to switch that around ... that lately the ghosts in the making it still even a critic and the class ... has started games at innovations to gain some weight these days ... a actually it to point B but it felt earnings rose to twenty one cents a share ... I aam editing it'll start date to six hundred and seven million dollars ... aam and its unique is this adults who become infected to me and ... this is based on the taper to read the news fun on a somewhat skeptical that I knew him three stalks to the item on the light ... I yes so the house of one five am though I have seen the and and that includes spinning off its coffee portfolio into a separate company ... investors and liking the news today and this is up about five percent and you might get paid ... to the next one is Whole Foods ecological Polk ... paycheck fruits and some people I'm outgoing and ... coffee fruits because they didn't do very well ... nowadays he can do well is going to shift down by double digits ... I gave my kid ... the Supreme about suffering market in the seventy percent of the still be hurting over the whole foods that and so what the company is being awarded at the appropriate been having outlook for the year ... and the CEO we think the companies facing stiff competition ... Ahmet and Israel no crisis that whole foods and watch Hyatt and the other bits and out ... I two seconds he was not talking about a camera quickly Tesla ... yes so I guess with a pointed this out after the bell it's one of those deals newest momentum stocks that has taken over the moon peaking in recent weeks ... it is also expected to be in line and so it's interesting to hear from the CEO in the mosque ... and to see what's ahead people will devote enough by Kiran much always a pleasure Polya Lesova ... sweet son off of the seven seas on why the US is assembling a team of millet re annul or enforcement specialist Simon Best again is ... to help Nigeria such false cool goals abducted by a militant group ... affiliated with the al Qaeda's terrorist network ... residents have been holding demonstrations that single release of the school bells on Sunday a little girls ... ages twelve to fifteen with kidnapped by the group known as Boko Haram ... bringing the total to two hundred and seventy six and Justin who is this terror group and what is that mission ... take a walk ... why did better on this award understand and ... because their name isn't even the real name ... around this that they may be associated with the loose knit group of Islamist terrorists based in northern Nigeria ... in the local Housel language it means Western education is forbid ... but the group's actual name is a mouthful ... it's a job lot to ... these should not be double what she was she not ... that means people committed to the propagation of the profits teachings in jihad ... most experts agree the group started in two thousand to under the leadership of Muhammad use it ... and then took an extremist turn into thousandnine after years of was killed apparently by Nigerian security forces ... of Opel car should help to go for is a primary leader ... ago's Citigroup has killed thousands since then ... Iran says they won't want ... stricter purchased a real law than the one currently in place in northern parts of that year ... a bit into what educational ... because it's run by and that is what about the job ... that ... is that ... what ... all in and bought the tickets ... bought in here are a good fit ... three ... to those who don't share their beliefs ... and or ... death to a government they Cisco dropped and blasphemous were ... that will be back in thirty seconds with more than use up ... welcome back to the new sub at the list a live I'm Simon Constable ... as the economy rebounds in what should you be looking fall when trying to navigate the mock it's ... soft wool equities chief investment officer of y de la joins us now ... on where ... to look and want to look for thank you Brian much for joining us so good that morning so the economy still seems ... weak up it seems that will last week you have spoiled it when peeling back the onthe and some some new ... bright ... spots tells about the ... gap and the added ... in a job number they are clearly the labor ... market seems to be improving a lot of the word here from Janet Yellen today and see what the they way she looks at it that's a pretty positive ... I think out in a manufacturing continues to be a bright spot for the U S economy ... I we can ... to not only because of capital spending on another the capital stock ... has which it machines to Michaela the botanical of things right that that that is like is the oldest it's been in decades right well this is is to fix is actually Renae essence of the manufacturing in the US in the labor force in the U S as well as companies started to move in the next cycle of capital expenditures so it's it's both both both sides ballot to have to say though the housing market still a question ... and I think that's that ... that's can be interesting to see how I've yet to Yellen discusses that made it a contest ... on and how we'd note just to remind everybody that existed in the eye muscles a lot so maybe you will for this before but ... we've never had a robust economic recovery with housing take in a significant portion of that one already saying that now ... it has been not live so it's absolutely I mean you look of the mortgage applications that are there they continued to go down I will continue to see the a number of home sales that actually continued to steal speeds I'll combined idea how to play the recovery since the bottom in two thousand and eight but I am still the right now at the place where it's just us the stock and and on the horizon wising up a bit of inflation of food price inflation which typically eat ... meat if you excuse the pun eat into people's disposable income ... with all of that in mind ... if you have some money to invest a few lucky enough to have some savings ... how would you recommend that investors put him to do with that money would would you say staying cash in stocks ... bonds and what's the answer well it's it's it's a great question I think Aveo within within we know is that interest rates will only go up ... I'm their friend that situation especially find ways to hedge for inflation ... you have to pitch will for inflation but looking at areas like greets ... looking at areas that you know allowed to stay in the stock market is clearly a natural hedge for inflation ... I'm you know still ... it was still below and there's no signs of real inflation will notes coming ... on is just to be a matter of time when we start getting those risk of the table ... us stocks too risky the average investor may one other things we've we sorta is that that when things look very bleak as resold in early two thousand and nine out when you You'll for one k turned into a one I want a ahead people bailed out of the ball the amount they will burden of this and then coming back now when someone spoke to high is it just ... too emotionally haunt for most people to invest in stocks yet nothing that are made of the risk averse and clearly you know when that extreme I think having a retail investors in general the behavior of investors continues to just be normal now especially for certain parts of the stock of the market ... but stocks are always welcome in it for a fall in the need to have equities need to have a balance so what Opel was walk on maps if you're fifty years old ... which a lot of you as I know what percentages of fifty percent of your age ... in equities but that the sun a good rule of thumb ... yet you should leave you know when we look again to outwit our retirement products tend to be somewhere in the range is a fifty two in a forty percent you know in in that range for having him sleep or ... not you mention the young the capital spending combo is likely to pick up and will continue to to to so I'll wear which to invest if you wanted the little bit like them if you like play money to and to invest what what would you look at we look at companies like General Electric stuff I know ... well you know I cannot really specific up and it'll stop button on the sector side I'm you know areas that will benefit from higher interest rates in all areas that ... will naturally don't grow when interest rates go higher ... the soaring get all of these growth five continents and in doing so can't technology you looking at areas like that consumer cyclicals ... that health care ... bills areas than to do very well when interest rates go go go up ... when the financials will benefit from the high rates is what helped the financials hands of those consumer cyclicals thank you Brian much ... Omar Aguilar it ... now I'm Simon Constable this is doubly SJ lie that ... that said